Life Skills Offers Timely Tips for Wise Credit-Card Use
Many students at postsecondary schools are heading into their holiday breaks carrying long shopping lists — and credit cards to pay for their purchases. But USA Funds®' financial-literacy program Life SkillsSM warns students that piling up excessive credit-card debt can lead to bills that can't be paid on time. And that can lead to a poor credit rating that will haunt them for years to come.
Financial-aid administrators can help students avoid the pitfalls of using plastic this holiday season by sharing these "credit-card don'ts" from Life Skills:
- Don't get a second or third card. One card is enough.
- Don't use credit cards for cash advances.
- Don't charge more than you can pay off in a month.
- Don't use a credit card to pay for essentials such as groceries or rent. If you don't have sufficient disposable income to cover the basics, it's time to reconsider your budget.
- Don't be persuaded by rebates, cash rewards and free airline miles.
- Don't permit an increase in your credit limit.
More information about curbing credit-card debt — as well as information about financial aid, completing school on time, succeeding in school and after graduation, and repaying education loans — is available through Life Skills.
For more credit-card tips to share with your students, and to learn more about Life Skills, contact your USA Funds debt-management consultant.
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